[kaperoni] Some information came to light in recent days. When put together, it implies YES!

[kaperoni] So here we go… Here is the first article…

[kaperoni] Council of Ministers: the deadline next May immunity Iraqi funds - 01/29/2013 LINK

[kaperoni] Quote…

[kaperoni] “Cabinet confirmed, Tuesday, that the end of immunity to the funds in foreign banks will end on 22 May next.”...Read More Link On Right

[kaperoni] And this quote… [kaperoni] "immunity to Iraqi funds will expire in the middle of the month of May next by the United States of America." [kaperoni] And this quote… [kaperoni] "the amounts found outside Iraq is $ 65 billion of the Central Bank and other private funds the Iraqi government will be retrieved after the lifting of immunity." [kaperoni] Now, we know there are several requests to activate the banking sector…here is just one article… [kaperoni] Amer Winner: call Mr. Hakim to activate the banking system will push forward the country - 03.12.2013 LINK [kaperoni] Quote… [kaperoni] “Wade member of the Committee on Economy and Investment parliamentary Amer winner invitation of the President of the Islamic Supreme Council of Iraq Ammar al-Hakim to activate the banking system in Iraq because that would push the country forward.” [kaperoni] And this one… [kaperoni] “The first problems faced by investors who want to invest in Iraq is contexts banking and banking system complex," noting that "had previously asked to modify this system to find systems new global banks so that we have to pay for this field service for the Iraqi people." [kaperoni] And this one… [kaperoni] “He continued winning his speech by saying that he "must reconsider these areas and support the private sector because it is the backbone of the economy in all countries of the world and today Iraq will depend on its policy on the free market must be activating the role of the country's economy service for the Iraqi people of Iraq who have suffered a lot of deprivation due to past policies ". [kaperoni] Now this article.. [kaperoni] Trade and investment agreement with the United States enter into force - 03/06/2013 LINK [kaperoni] Quote… [kaperoni] “Announced on Wednesday, to enter trade and investment agreement signed between Iraq and the United States into force.” [kaperoni] And this quote… [kaperoni] “He added: that Iraq is serious in its quest to enable and facilitate the completion of foreign investment, particularly from the United States of America, by making the necessary adjustments in the investment law and the laws and regulations chock him,

to create a fertile environment attractive for foreign investment and local levels, and including giving freedom to the investor bring employment and expertise from abroad and freedom movement of capital to and from Iraq, and to give guarantees not to expropriation or nationalization of investment projects.” [kaperoni] And the key here is… “freedom movement of capital to and from Iraq” [kaperoni] Now... This is an article on what it takes to bring investment capital into a developing country...such as Iraq... [kaperoni] What attracts Foreign Direct Investment (FDI) - November 26, 2001 LINK [kaperoni] Here are two quotes.. [kaperoni] “RICH AND poor countries alike are competing for foreign direct investment by opening to outside investors, streamlining approval processes, opening sectors to foreign investors, and allowing freedom of capital to be repatriated and profits to be remitted with a minimum of official intervention.” [kaperoni] And this one… [kaperoni] “The third most important element is the ability to repatriate capital and remit profits. Countries that have no restrictions on capital movement and that protect foreign investors will attract more FDI inflows.

Jordan stands among the best in this regard; it has no restrictions whatsoever on the movement of capital or profits. Jordan has committed to this in its structural adjustment and economic reform programmes with the IMF and, among others, the EU-Jordan Association Agreement.” [kaperoni] The reference to Jordan is exactly what Iraq is going through with the IMF and previous SBA. You were all wondering when the benchmarks from the SBA will be implimented? [kaperoni] Ok, now this is where it all gets good…I have set the table with these facts above. [kaperoni] Now this article… [kaperoni] Foreign Exchange Auction, International Reserves, and Central Bank Independence in Iraq - February 24th, 2013 LINK [kaperoni] “4. Foreign exchange auction has long lasted its purpose. Alternative arrangement is needed to serve foreign exchange demands of both public and private sectors.

The depositing of all oil revenues in CBI instead of DFI will enhance such arrangement and make CBI the main provider of foreign exchange to the public sector. The lifting of UN Chapter VII’s Sanctions will facilitate the new role.” [kaperoni] This quote, though from an economist, does imply the CBI currency auctions will come to an end (long lasted its purpose). And alternative arrangements need to be made…which makes sense to make the dinar internationally convertible (which solves the auction problem) as stated above in the trade and investment article (SFA) at that time… “freedom movement of capital to and from Iraq” [kaperoni] But it gets better… [kaperoni] “The depositing of all oil revenues in CBI instead of DFI will enhance such arrangement and make CBI the main provider of foreign exchange to the public sector.” [kaperoni] This quote above from the Council of Ministers article on May 22 oil revenues will be deposited in the CBI. But even more, the CBI at that time will be “the main provider of foreign exchange.” Which means on May 22nd, the auctions will be based on this economist's statement...and the "CBI will be the main provider of foreign exchange." [kaperoni] But it gets even better… [kaperoni] “The lifting of UN Chapter VII’s Sanctions will facilitate the new role.” [kaperoni] In other words, once they lift UN Chapter 7, that will be the trigger (facilitate new roll) for the CBI which, IMO, means movement from IMF Article 14 to Article 8. Which means that must also occur at or about the same time as the May 22nd timeframe. [kaperoni] So to recap… [kaperoni] Calls to open the banking sector to support the private sector. [kaperoni] Agreement with the USA to have “freedom movement of capital to and from Iraq.” [kaperoni] DFI money end May 22nd. Oil revenue goes into the CBI at that point. Which is the key…because… [kaperoni] Currency auctions should be ending and “alternative arrangement is needed to serve foreign exchange demands.” And then… [kaperoni] The CBI will become “the main provider of foreign exchange to the public sector”...more than likely that will be a shift from IMF Article 14 to Article 8 to achieve this. [kaperoni] And lastly... [kaperoni] “The lifting of UN Chapter VII’s Sanctions will facilitate the new role.” [kaperoni] IMO, we have a real timeline to look at for the dinar to become internationally convertible. Sometime right around May 22nd, 2013 [kaperoni] Two lines in red show the CBI reserves will double in May. Oil revenue in addition to that will make it the strongest currency in the world. [kaperoni] Kap

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Armando

3/15/2013 08:02:30 am

Wonderful break down... I can wait for May, I've waited for this long. It's nice to see real news in the midst of all these rumors and "I heards" in this thing!

Luckyb

3/15/2013 08:20:21 am

umm Hey Guys I don't mean to be a kill joy but your know all this information your throwing out there is all well and good , but there is one small thing that is missing to make all THIS COME TOGETHER AND THAT IS A IQD REAVULEATION !!!!! REAL MONEY NOT MONOPLY MONEY , think of every thing they can do once there currency becomes something besides toilet paper , think what we will be able to do once Iraqi currency becomes something . and until it does the Iraqi people and many US people have one thing in common we are all sitting here twiddling our thumbs till it happens .. Fact not fiction ,

It will never get close to the end of may. Did you not read the release from moon on deadline march 31st on getting everything done. The world will not wait that long. The investment now rests on urgency there people. Tell them you pass a budget you better tell them soon you ratified it, give us our share. They will not pass a budget of 117 trillion without a movement in currency. Common sense will tell you that. The investment is about there people what are you promising them. And a low float no way. One to one then a float maybe. Telling them we are going to bring strength to your currency then starting a low float, NO WAY IN HECK. This thing IMHO will fly this month. The DFI IS JUST A DROPPED DEAD DEADLINE.

Same

3/15/2013 09:05:42 am

Hummmm, we will see how your march 31st deadline holds up soon enough. Can you please provide a link to Moon's statement for verification?

Baghdad (AIN) -The Secretary-General Ban Ki-moon on Wednesday urged Iraq to “immediately remove all obstacles” hindering the “timely completion” of the Iraq-Kuwait Boundary Maintenance Project (IKBMP) by the end of this month.

maryk

3/15/2013 10:55:03 am

Gee where have you been the last few years where they've been telling their people the same and budgets were passed?? To say that the world won't wait is pretty naive. Don't hold your breath on any dates and just be happy whenever it comes.

EddieB

3/15/2013 08:22:40 am

Kap .. Thank you for your down to earth non pumping articles unlike some of these other Gurus! Just the facts!!!!

Shredd

3/15/2013 09:30:51 am

Same -- the link you seek is here: http://www.kuna.net.kw/ArticleDetails.aspx?id=2298283&language=en

"Both sides committed to take the necessary steps to ensure that the work is completed by the set deadline of 31 March"

That said, we all should have long learned by now that Iraq doesn't "have to" RV by a certain date or else. You should know to look forward to certain deadlines but not be tricked to think the Dinar will grow in value by a certain date. I would never assume that nor should anyone else. Rather, look at the big picture of what is and has been completed.....see the pace at which Iraq is moving forward and be excited each day to see evidence of continued progress, not frustration with a simple-minded approach of being disappointed if there is no RV.

Billygoat

3/15/2013 09:40:07 am

Hopefully it comes fruition...great analysis Kap!

CD

3/15/2013 09:50:51 am

Thanks Kap, Iraq is flush with moo-la! It looks like Iraq doesn't have much debt to go either,